FxWirePro: USD/JPY hovers near 5-month high, maintains bullish bias

• USD/JPY traded near five-month high on Monday as investors continued to evaluate the Bank of Japan's interest rate outlook.

• At a Japanese Bankers Association event, BoJ Governor Kazuo Ueda emphasized a cautious stance on policy changes, tying rate hikes to sustained economic and price improvements.

• On the data front, Japan’s service activity expanded for a second straight month in December, buoyed by solid demand and business expansion, a private-sector survey showed on Monday.

• The final au Jibun Bank Service purchasing managers' index (PMI) grew to 50.9 in December from 50.5 in November, according to the survey compiled by S&P Global Market Intelligence. 

•  At GMT 10.29,the dollar was up 0.38% at 157.85 against Japanese yen .
 
• Immediate resistance is located at 158.08 (23.6%fib), any close above will push the pair towards 159.00 (Psychological level).

•  Support is seen at 157.07 (Daily  low) and break below could take the pair towards 156.5(38.2%fib).

Recommendation: Good to buy around  157.60 with stop loss of 156.80 and target price of 158.40